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Millennial shuts down judgy boomers by comparing cost of 'luxuries' in 1980 vs 2025

The data backs him up.

via Canva

Millennial man says "luxuries" aren't the reason young people can't afford to live.

Millennials constantly lament the high cost of living and the fact that so-called "American dream" is out of reach for many of them. Housing prices have skyrocketed, as has the cost of a college education. Eating out has gotten drastically more expensive, and making food at home with fresh groceries is hardly any cheaper. It's just so hard, they say, to get a foothold in the modern economy. Boomers, who grew up in the 50s, 60s, and 70s, however, aren't wasting any sympathy tears.

One of the big talking points in the great American millennials versus baby boomers debate is that, yes, things are more expensive; but has the younger generation has knee-capped itself by its lavish spending habits that have prevented them from owning homes? If millennials stopped buying $14 avocado toast and $1,000 iPhones, would they be able to save enough for a down payment on a modest house?

Freddie Smith, 36, of Orlando, Florida, recently went viral on TikTok for a video in which he challenged the boomer argument with statistics from the Bureau of Labor, Federal Reserve, and the U.S. Census Bureau.

Smith believes that the older generations misunderstand millennial finances because their concept of luxury is based on 1980s economics. That's when most boomers were coming of age and buying their own family homes, and their ideas of saving up for a down payment and affording a monthly mortgage are heavily outdated.

Smith says that for baby boomers, essentials such as rent and child care were much more affordable, but items considered luxuries (TVs, CD players, computers) were much more expensive.

How is the economy different for millennials than it was for baby boomers?

"The main shift is that core essentials—housing, education, healthcare, and even food—have become more expensive," Smith said. "Housing and rent, for instance, now outpace wage growth, making homeownership feel unattainable for many. The cost of childcare has also skyrocketed, and food prices have increased.”

The home price to income ratio is currently at an all-time high. The Joint Center for Housing Studies of Harvard University writes, "In 2022, the median sale price for a single-family home in the US was 5.6 times higher than the median household income, higher than at any point on record dating back to the early 1970s." That ratio was closer to 2.5 in 1980.

Even transportation has skyrocketed. Buying a new car now costs about as much as the median yearly salary, with entry-level vehicles disappearing rapidly and being replaced with high-tech, fuel-efficient offerings.

"As a result, I think older generations have a different perspective on luxury versus necessity,” Smith continued. “They grew up in a time when hard work typically led to financial stability, whereas today, even with hard work, many people struggle with the high costs of housing, rent and medical expenses. Basic survival used to be far more affordable, allowing people more financial room to build a stable life."

  - YouTube  www.youtube.com  

Smith’s numbers don’t lie. For a person in the '80s to own three TVs, a CD player, a cellphone, a microwave, and a computer, it would cost them 3.5 years of rent or a 20% downpayment on the average home. So, it was irresponsible for someone in that period to purchase all of what was known then as luxuries.

However, for millennials, these "fancy toys" are a lot more affordable compared to the big ticket items of housing, childcare, and college education. Skimping out on them won't make a meaningful difference in the attempt to save up the massive amount of cash required for a down payment on a modern home. To wit:

"But if you skip that daily $6 Starbucks drink, you’ll have enough for the downpayment in 29.22 years," Yokahana joked in the comments.

"I hate that housing and transportation have become luxuries," Molly added.

"Imagine spending 3x your rent on a microwave," Donutdisaster wrote.

Older people may see millennials with multiple TVs in their home, along with iPhones and tablets, and think that money could be better saved up in service of the "American dream." But the truth is that those savings won't really help, and worse, they'll make life pretty unenjoyable in the meantime!


Why are luxury goods more affordable now than they were in the '80s?

The price of manufactured goods has steadily fallen over the last few decades due to technological improvements and trade policies that have allowed the U.S. to import goods from places where labor costs are cheaper.

"International, global competition lowers prices directly from lower-cost imported goods, and indirectly by forcing U.S. manufacturers to behave more competitively, with lower prices, higher quality, better service, et cetera," Sociologist Joseph Cohen of Queens University said, according to Providence Journal.

Even as recently as the early 2000s, a high-quality TV was likely to cost over $1,000. Nowadays you can get an equivalent, or better, television set for just a few hundred bucks.

Why are housing prices so high?

Housing prices in the US have soared due to the low inventory caused by the Great Recession, mortgage rates, and zoning laws that make building more challenging.

 Rents have increased considerably since the pandemic due to low inventory, inflation, barriers to home ownership, and the fact that more people want to live alone than with a roommate or romantic partner.

Smith’s breakdown of the economic changes over the past two generations makes a strong case for the idea that millennial financial troubles have more to do with systemic problems than spending habits. The boomers got a bad deal regarding luxury items, and the millennials with necessities. Wouldn’t living in a world where both were affordable in the same era be great?

This article originally appeared in February. It has been updated.

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millennials
Democracy

Millennial says boomers have it backward when they talk about wasting money on 'luxuries'

Things couldn't have been more different.

via Canva

A young couple can't handle high prices and their dad says to save money.

One of the big talking points in the great American millennials versus baby boomers debate is whether the younger generation has knee-capped itself by its lavish spending habits that have prevented them from owning homes. If millennials stopped buying $14 avocado toast and $1,000 iPhones, would they be able to save enough for a down payment on a modest home?

Freddie Smith, 36, of Orlando, Florida, recently went viral on TikTok for a video in which he challenged the boomer argument with statistics from the Bureau of Labor, Federal Reserve, and the U.S. Census Bureau. Smith believes that the older generations misunderstand millennial finances because their concept of luxury is based on 1980s economics. Smith says that for baby boomers, essentials such as rent and child care were much more affordable, but items considered luxuries (TVs, CD players, computers) were much more expensive.

How is the economy different for millennials than it was for baby boomers?

"The main shift is that core essentials—housing, education, healthcare, and even food—have become more expensive," Smith said. "Housing and rent, for instance, now outpace wage growth, making homeownership feel unattainable for many. The cost of childcare has also skyrocketed, and food prices have increased.”

"As a result, I think older generations have a different perspective on luxury versus necessity,” Smith continued. “They grew up in a time when hard work typically led to financial stability, whereas today, even with hard work, many people struggle with the high costs of housing, rent and medical expenses. Basic survival used to be far more affordable, allowing people more financial room to build a stable life."

Smith’s numbers don’t lie. For a person in the '80s to own three TVs, a CD player, a cellphone, a microwave, and a computer, it would cost them 3.5 years of rent or a 20% downpayment on the average home. So, it was irresponsible for someone in that period to purchase all of what was known then as luxuries. However, these days, for a Millennial to have the average apartment and the equivalent amount of "luxuries" would only cost a little over one month's rent.

1980s, boomers, millennialsA 1980s computer and television. via Canva

"But if you skip that daily $6 Starbucks drink, you’ll have enough for the downpayment in 29.22 years," Yokahana joked in the comments. "I hate that housing and transportation have become luxuries," Molly added. "Imagine spending 3x your rent on a microwave," Donutdisaster wrote.

Why are luxury goods more affordable now than they were in the '80s?

The price of manufactured goods has steadily fallen over the last few decades due to technological improvements and trade policies that have allowed the U.S. to import goods from places where labor costs are cheaper. "International, global competition lowers prices directly from lower-cost imported goods, and indirectly by forcing U.S. manufacturers to behave more competitively, with lower prices, higher quality, better service, et cetera," Sociologist Joseph Cohen of Queens University said, according to Providence Journal.

Why are housing prices so high?

Housing prices in the US have soared due to the low inventory caused by the Great Recession, mortgage rates, and zoning laws that make building more challenging. Rents have increased considerably since the pandemic due to low inventory, inflation, barriers to home ownership, and the fact that more people want to live alone than with a roommate or romantic partner.

Smith’s breakdown of the economic changes over the past two generations makes a strong case for the idea that millennial financial troubles have more to do with systemic problems than spending habits. The boomers got a bad deal regarding luxury items, and the millennials with necessities. Wouldn’t living in a world where both were affordable in the same era be great?

This article originally appeared in February

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millennials
Democracy

Reality has hit. A small-business-owning mother's receipt that shows the pain of tariffs.

Here's what the new world looks like.

via Sofia Ramsay/TikTok (used with permission)

Small business owner Sofia Ramsay shares her tariff bill.

After the Trump administration raised tariffs on countries across the globe earlier this month, the bills are starting to come due, and we’re getting the first look at how this abrupt realignment to international trade will affect everyday working Americans. Interestingly, a poll in late January 2025 found that only 45% of Americans understand how tariffs work. Many incorrectly believe that the Chinese exporter pays the fee when the US imposes a tariff on China. However, in reality, when the U.S. imposes a tariff on Chinese goods, the American importer pays the tariff. The funds raised by the tariffs then go to the government, like a tax. Polls also show that those who understand how tariffs work are much less likely to support them than those who do not.

How do tariffs affect American business owners?

Sofia Ramsay, a mother who has owned a homemade jewelry business for the past 13 years, explained how the tariffs affect her small business, and it’s a practical explanation of how tariffs work. “I recently started doing a new program which is a subscription box that sends bead kits all about having a good time and celebrating friendships and bringing art into your life," she begins her video. “a lot of the materials that I provide for my subscription service are upcycled and reused just in order to keep up with trends and to keep up with supply and demand. Quite simply, I do need to import a lot of the materials.”

@sofiaramsay

The 🍊🤡 is still up there saying other countries will pay these bills. Tell me how this makes America great?

Ramsay adds that they have a great relationship with the factory she works with in China, but things started to become difficult a few weeks ago. It took over a month to get an expedited shipment of materials. Then she received a tariff bill from UPS. “It was a tariff bill on my import, now I'm happy to pay the price to do my business, but this is something I'm not prepared for as far as price increases,” she said. “I just don't think it's sustainable for my business to take on this level of expense.”

The cost of her tariff bill? $208 on $485 worth of goods. 

That's a 43% increase in her cost of doing business, and the money went to the U.S. government. This was before the administration raised tariffs to 245%, which would have cost Ramsay $698.25.

 


Now that Ramsay's expenses have increased due to the tariff, does she pass it on to the customer? “I’m not willing to raise my prices, but I probably should raise them by 15-20% or so just to offset these fees,” she told Upworthy.

One of the goals of the tariff policy is to encourage Americans to source their products from U.S. companies. Or enable investors to increase manufacturing in the U.S. However, in a recent video, Ramsay explained why she can’t source her products from a U.S.-based company. The only company that does something similar is in New York City, and their products constantly change, so that she couldn’t deliver a consistent product to her customers. Further, the upcycled beads in New York originally come from overseas; they’ve just been handed around through separate transactions.

“I have to just be at the whims and fancies of whatever is available in this warehouse. It would be like if I had a fashion design company, if I was a clothing brand, and then I just switched to being a thrift store or vintage store or reseller, that would kinda pull the rug out from under my customer base,” she said.

Even though Ramsay is in a bind, being charged a hefty price for importing her products and without an option to source them from within the country, she’s optimistic that things may change. “I believe [the tariffs] are temporary and just posturing on the part of this administration. They have no plans to invest in domestic manufacturing,” she told Upworthy.

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Internet

Airbnb host ditches the cleaning fee and finds unexpected benefits

The host went for a more "honest" approach with her listings—and saw the behavior of her guests change dramatically.

@rachelrboice/TikTok
Many frustrated Airbnb customers have complained that the separate cleaning fee is a nuisance.

We've all been there. We've discovered the perfect Airbnb, maybe a little cottage in the mountains, or a condo with stunning beach views. And the price is right in our budget. Hallelujah! Then, unfortunately, when we get to the booking page we realize our total cost is far higher than expected. Why? It's the dreading cleaning fee.

Airbnb defines its notorious cleaning fee as a “one-time charge” set by the host that helps them arrange anything from carpet shampoo to replenishing supplies to hiring an outside cleaning service—all in the name of ensuring guests have a “clean and tidy space.”

But as many frustrated Airbnb customers will tell you, this feature is viewed as more of a nuisance than a convenience. According to NerdWallet, the general price for a cleaning fee is around $75, but can vary greatly between listings, with some units having cleaning fees that are higher than the nightly rate (all while sometimes still being asked to do certain chores before checking out). And often none of these fees show up in the total price until right before the booking confirmation, leaving many travelers feeling confused and taken advantage of. It's certainly a case of sticker shock if you're used to staying in hotels.

However, some hosts are now opting to build cleaning fees into the overall price of their listings, mimicking the strategy of traditional hotels.

Rachel Boice runs two Airbnb properties in Georgia with her husband Parker—one being this fancy glass plane tiny house (seen below) that promises a perfect glamping experience.

@rachelrboice

Welcome to The Tiny Glass House 🤎 #airbnbfinds #exploregeorgia #travelbucketlist #tinyhouse #glampingnotcamping #atlantageorgia #fyp

Like most Airbnb hosts, the Boice’s listing originally showed a nightly rate and separate cleaning fee. According to her interview with Insider, the original prices broke down to $89 nightly, and $40 for the cleaning fee.

But after noticing the negative response the separate fee got from potential customers, Rachel told Insider that she began charging a nightly rate that included the cleaning fee, totaling to $129 a night.

It’s a marketing strategy that more and more hosts are attempting in order to generate more bookings (people do love feeling like they’re getting a great deal) but Boice argued that the trend will also become more mainstream since the current Airbnb model “doesn’t feel honest.” Which is funny, because if anything listing the cleaning charge is more transparent! But users tend to feel duped because they can't see the full price when they're browsing the listings.

"We stay in Airbnbs a lot. I pretty much always pay a cleaning fee," Boice told Insider. "You're like: 'Why am I paying all of this money? This should just be built in for the cost.'"

How much can it cost to clean a tiny house like this one? Photo by Aysegul Yahsi on Unsplash

Since combining costs, Rachel began noticing another unexpected perk beyond customer satisfaction: guests actually left her property cleaner than before they were charged a cleaning fee.

Her hypothesis was that they assumed she would be handling the cleaning herself.

"I guess they're thinking, 'I'm not paying someone to clean this, so I'll leave it clean,'" she said.

This discovery echoes a similar anecdote given by another Airbnb host, who told NerdWallet guests who knew they were paying a cleaning fee would “sometimes leave the place looking like it’s been lived in and uncleaned for months.” So, it appears to be that being more transparent and lumping all fees into one overall price makes for a happier (and more considerate) customer.

This phenomenon has been studied by economists across many different fields. A blueberry farmer once considered charging customers for grazing on blueberries as they walked until an economist told him paying the fee would just encourage people to eat even more. Daycares who charge parents fees for picking their kids up late often find the fee increases the number of late parents instead of decreasing it.

It comes down to the "cost" of a decision. If you pay the same cleaning fee no matter what condition you leave the property in, a lot of people will find it's just not worth their time to tidy up after themselves. When the cost of leaving the place filthy is more nebulous, or human (forcing another person to do it), people are more willing to help out.

snow white, cleaning, airbnb, hotels, travel, humanity, kindness, economicsWe're happy to clean up if we think we're saving someone else the troubleGiphy



These days, it’s hard to not be embittered by deceptive junk fees, which can seem to appear anywhere without warning—surprise overdraft charges, surcharges on credit cards, the never convenience “convenience charge” when purchasing event tickets. Junk fees are so rampant that certain measures are being taken to try to eliminate them outright in favor of more honest business approachesSpeaking of a more honest approach—as of December 2022, AirBnb began updating its app and website so that guests can see a full price breakdown that shows a nightly rate, a cleaning fee, Airbnb service fee, discounts, and taxes before confirming their booking.

Guests can also activate a toggle function before searching for a destination, so that full prices will appear in search results—avoiding unwanted financial surprises.

As for Boice, business is booming. After her story went viral on TikTok, she decided to expand her property business with another glass house.

@rachelrboice

the other one is going so well so why not 🤷🏼‍♀️ #fyp #tinyhouse #tinyglasshouse #airbnb #atlanta #georgia #uniquestays #camping

Users were thrilled, especially ones who live in Georgia, within shouting distance of her properties. And after all the viral exposure, she's still not charging cleaning fees. Although, there's not much she can do about those pesky "Airbnb service fees." Oh well. You can't win 'em all.

This article originally appeared two years ago.

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